,i #aacth ,,congress #ast ,session ,h4 ,r4 #baee ,,in ,,the ,,house ,,of ,,representatives ,may #bc1 #bjac ,mr4 ,fattah 7for himself and ,mr4 ,hinojosa7 introduced the following bill2 which was referred to the ,committee on ,education and the ,workforce ,a ,,bill ,to award grants in order to establish longitudinal personal college readiness and savings online platforms for low-income students4 #a4 ,short title ,this ,act may be cited as the ,american ,dream ,accounts ,act of #bjac4 #b4 ,findings ,congress finds the following3 7#a7 ,only #i4h out of every #ajj individuals from low-income families will graduate from an institution of higher education before reaching the age of #bd4 7#b7 ,lack of knowledge about how to apply to1 and pay for1 an institution of higher education is a barrier for many low-income students and students who would be in the first generation in their families to attend an institution of higher education4 7#c7 ,according to ,public ,agenda1 most young adults give secondary school counselors fair or poor ratings for advice about attending an institution of higher education1 including advice about how to decide what institution of higher education to attend1 how to pay for higher education1 what careers to pursue1 and how to apply to an institution of higher education4 7#d7 ,more than #a1gjj1jjj students fail to file the ,free ,application for ,federal ,student ,aid 7,,fafsa71 and about one-third of such students would qualify for a ,federal ,pell ,grant4 7#e7 ,during the last #b decades1 costs of attending institutions of higher education have increased dramatically1 but need-based financial aid has not kept pace with such increasing costs4 7#f7 ,in the #aiij-aiia school year1 the maximum ,federal ,pell ,grant covered #de percent of the average cost of attendance at a public #d-year institution of higher education 7including tuition1 fees1 room1 and board71 but in the #bjaj-bjaa school year1 the maximum ,federal ,pell ,grant covered only #cd percent of such cost4 7#g7 ,parental and youth college savings are strong predictors of a youth's expectations about attendance at an institution of higher education4 7#h7 ,only #cb percent of parents who earn less than #ce1jjj a year are saving for their child's education at an institution of higher education4 7#i7 ,according to the ,center for ,social ,development1 8wilt0 occurs when a young person who expects to graduate from a #d-year institution of higher education has not yet attended such institution by the ages of #ai to #bb4 7#aj7 ,children who have savings dedicated for attendance at an institution of higher education are #d times more likely to attend a #d-year institution of higher education and avoid wilt4 #c4 ,definitions ,in this ,act3 7#a7 ,,esea ,definitions ,the terms local educational agency1 parent1 ,state educational agency1 and ,secretary shall have the meanings given the terms in section #iaja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja7 and the term charter school shall have the meaning given the term in section #ebaj of such ,act4 7#b7 ,american ,dream ,account ,the term ,american ,dream ,account means a personal online account for low-income students that monitors higher education readiness and includes a college savings account4 7#c7 ,appropriate ,committees of ,congress ,the term appropriate committees of ,congress means the ,committee on ,health1 ,education1 ,labor1 and ,pensions1 the ,committee on ,appropriations1 and the ,committee on ,finance of the ,senate1 and the ,committee on ,education and the ,workforce1 the ,committee on ,appropriations1 and the ,committee on ,ways and ,means of the ,house of ,representatives1 as well as any other ,committee of the ,senate or ,house of ,representatives that the ,secretary determines appropriate4 7#d7 ,college ,savings ,account ,the term college savings account means a savings account that-- 7,a7 provides some tax-preferred accumulation2 7,b7 is widely available 7such as ,qualified ,tuition ,programs under section #ebi of the ,internal ,revenue ,code of #aihf or ,coverdell ,education ,savings ,accounts under section #ecj of the ,internal ,revenue ,code of #aihf72 and 7,c7 contains funds that may be used only for the costs associated with attending an institution of higher education1 including-- 7i7 tuition and fees2 7ii7 room and board2 7iii7 textbooks2 7iv7 supplies and equipment2 and 7v7 ,internet access4 7#e7 ,dual ,enrollment ,program ,the term dual enrollment program means an academic program through which a secondary school student is able simultaneously to earn credit toward a secondary school diploma and a postsecondary degree or credential4 7#f7 ,eligible ,entity ,the term eligible entity means-- 7,a7 a ,state educational agency2 7,b7 a local educational agency2 7,c7 a charter school2 7,d7 a charter management organization2 7,e7 an institution of higher education2 7,f7 a nonprofit organization2 7,g7 an entity with demonstrated experience in educational savings or in assisting low-income students to prepare for1 and attend1 an institution of higher education2 or 7,h7 a consortium of #b or more of the entities described in subparagraphs 7,a7 through 7,g74 7#g7 ,institution of ,higher ,education ,the term institution of higher education has the meaning given the term in section #aja7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja7;a774 7#h7 ,low-income student ,the term low-income student means a student who is eligible to receive a free or reduced price lunch under the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agea et seq474 #d4 ,grant ,program 7a7 ,program ,authorized ,the ,secretary is authorized to award grants1 on a competitive basis1 to eligible entities to enable such eligible entities to establish and administer ,american ,dream ,accounts for a group of low-income students4 7b7 ,reservation ,from the amount appropriated each fiscal year to carry out this ,act1 the ,secretary shall reserve not more than #e percent of such amount to carry out the evaluation activities described in section #g7;a74 7c7 ,duration ,a grant awarded under this ,act shall be for a period of not more than #c years4 ,the ,secretary may extend such grant for an additional #b-year period if the ,secretary determines that the eligible entity has demonstrated significant progress1 based on the factors described in section #e7;b77#aa74 #e4 ,applications2 ,priority 7a7 ,in ,general ,each eligible entity desiring a grant under this ,act shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may require4 7b7 ,contents ,at a minimum1 the application described in subsection 7a7 shall include the following3 7#a7 ,a description of the characteristics of a group of not less than #cj low-income public school students who-- 7,a7 are1 at the time of the application1 attending a grade not higher than grade #i2 and 7,b7 will1 under the grant1 receive an ,american ,dream ,account4 7#b7 ,a description of how the eligible entity will engage1 and provide support 7such as tutoring and mentoring for students1 and training for teachers and other stakeholders7 either online or in person1 to-- 7,a7 the students in the group described in paragraph 7#a72 7,b7 the family members and teachers of such students2 and 7,c7 other stakeholders such as school administrators and school counselors4 7#c7 ,an identification of partners who will assist the eligible entity in establishing and sustaining ,american ,dream ,accounts4 7#d7 ,a description of what experience the eligible entity or the eligible entity's partners have in managing college savings accounts1 preparing low-income students for postsecondary education1 managing online systems1 and teaching financial literacy4 7#e7 ,a demonstration that the eligible entity has sufficient resources to provide an initial deposit into the college savings account portion of each ,american ,dream ,account4 7#f7 ,a description of how the eligible entity will help increase the value of the college savings account portion of each ,american ,dream ,account1 such as by providing matching funds or incentives for academic achievement4 7#g7 ,a description of how the eligible entity will notify each participating student in the group described in paragraph 7#a71 on a semiannual basis1 of the current balance and status of the student's college savings account portion of the student's ,american ,dream ,account4 7#h7 ,a plan that describes how the eligible entity will monitor participating students in the group described in paragraph 7#a7 to ensure that each student's ,american ,dream ,account will be maintained if a student in such group changes schools before graduating from secondary school4 7#i7 ,a plan that describes how the ,american ,dream ,accounts will be managed for not less than #a year after a majority of the students in the group described in paragraph 7#a7 graduate from secondary school4 7#aj7 ,a description of how the eligible entity will encourage students in the group described in paragraph 7#a7 who fail to graduate from secondary school to continue their education4 7#aa7 ,a description of how the eligible entity will evaluate the grant program1 including by collecting1 as applicable1 the following data about the students in the group described in paragraph 7#a7 during the grant period1 and1 if sufficient grant funds are available1 after the grant period3 7,a7 ,attendance rates4 7,b7 ,progress reports4 7,c7 ,grades and course selections4 7,d7 ,the student graduation rate1 as defined in section #aaaa7;b77#b77;,c77vi7 of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #fcaa7;b77#b77;,c77vi774 7,e7 ,rates of student completion of the ,free ,application for ,federal ,student ,aid described in section #dhc of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajij74 7,f7 ,rates of enrollment in an institution of higher education4 7,g7 ,rates of completion at an institution of higher education4 7#ab7 ,a description of what will happen to the funds in the college savings account portion of the ,american ,dream ,accounts that are dedicated to participating students described in paragraph 7#a7 who have not matriculated at an institution of higher education at the time of the conclusion of the period of ,american ,dream ,account management described in paragraph 7#i74 7#ac7 ,a description of how the eligible entity will ensure that funds in the college savings account portion of the ,american ,dream ,accounts will not make families ineligible for public assistance4 7#ad7 ,a description of how the eligible entity will ensure that participating students described in paragraph 7#a7 will have access to the ,internet4 7c7 ,priority ,in awarding grants under this ,act1 the ,secretary shall give priority to applications from eligible entities that-- 7#a7 are described in section #c7f77;,h72 7#b7 serve the largest number of low-income students2 or 7#c7 in the case of an eligible entity described in subparagraphs 7,a7 or 7,b7 of section #c7f71 provide opportunities for participating students described in paragraph 7#a7 to participate in a dual enrollment program at no cost to the student4 #f4 ,authorized ,activities 7a7 ,in general ,an eligible entity that receives a grant under this ,act shall use such grant funds to establish an ,american ,dream ,account for each participating student described in section #e7;b77#a71 which will be used to-- 7#a7 open a college savings account for such student2 7#b7 monitor the progress of such student online1 which-- 7,a7 shall include monitoring student data relating to-- 7i7 grades and course selections2 7ii7 progress reports2 and 7iii7 attendance and disciplinary records2 and 7,b7 may also include monitoring student data relating to a broad range of information1 provided by teachers and family members1 related to postsecondary education readiness1 access1 and completion2 7#c7 provide opportunities for such students1 either online or in person1 to learn about financial literacy1 including by-- 7,a7 assisting such students in financial planning for enrollment in an institution of higher education2 and 7,b7 assisting such students in identifying and applying for financial aid 7such as loans1 grants1 and scholarships7 for an institution of higher education2 7#d7 provide opportunities for such students1 either online or in person1 to learn about preparing for enrollment in an institution of higher education1 including by providing instruction to students about-- 7,a7 choosing the appropriate courses to prepare for postsecondary education2 7,b7 applying to an institution of higher education2 7,c7 building a student portfolio1 which may be used when applying to an institution of higher education2 7,d7 selecting an institution of higher education2 7,e7 choosing a major for the student's postsecondary program of education or a career path2 and 7,f7 adapting to life at an institution of higher education2 and 7#e7 provide opportunities for such students1 either online or in person1 to identify skills or interests1 including career interests4 7b7 ,access to ,american ,dream ,account 7#a7 ,in ,general ,subject to paragraphs 7#c7 and 7#d71 and in accordance with applicable ,federal laws and regulations relating to privacy of information and the privacy of children1 an eligible entity that receives a grant under this ,act shall allow vested stakeholders1 as described in paragraph 7#b71 to have secure access1 through the ,internet1 to an ,american ,dream ,account4 7#b7 ,vested ,stakeholders ,the vested stakeholders that an eligible entity shall permit to access an ,american ,dream ,account are individuals 7such as the student's teachers1 school counselors1 counselors at an institution of higher education1 school administrators1 or other individuals7 that are designated1 in accordance with the ,family ,educational ,rights and ,privacy ,act of #aigd 7#bj ,u4,s4,c4 #abcb;g71 by the parent of a participating student in whose name such ,american ,dream ,account is held1 as having permission to access the account4 ,a student's parent may withdraw such designation from an individual at any time4 7#c7 ,exception for ,college ,savings ,account ,an eligible entity that receives a grant under this ,act shall not be required to give vested stakeholders1 as described in paragraph 7#b71 access to the college savings account portion of a student's ,american ,dream ,account4 7#d7 ,adult ,students ,notwithstanding paragraphs 7#a71 7#b71 and 7#c71 if a participating student is age #ah or older1 an eligible entity that receives a grant under this ,act shall not provide access to such participating student's ,american ,dream ,account without the student's consent1 in accordance with the ,family ,educational ,rights and ,privacy ,act of #aigd 7#bj ,u4,s4,c4 #abcb;g74 7#e7 ,input of ,student ,information ,student data collected pursuant to subsection 7a77#b77;,a7 shall be entered into an ,american ,dream ,account only by a school administrator or such administrator's designee4 7c7 ,prohibition on use of student information ,an eligible entity that receives a grant under this ,act shall not use any student-level information or data for the purpose of soliciting1 advertising1 or marketing any financial or non-financial consumer product or service that is offered by such eligible entity1 or on behalf of any other person4 7d7 ,prohibition on the use of grant funds ,an eligible entity shall not use grant funds provided under this ,act to provide the initial deposit into a college savings account portion of a student's ,american ,dream ,account4 #g4 ,reports and ,evaluations 7a7 ,in general ,not later than #a year after the ,secretary has disbursed grants under this ,act1 and annually thereafter until each grant disbursed under section #d has ended1 the ,secretary shall prepare and submit a report to the appropriate committees of ,congress1 which shall include an evaluation of the effectiveness of the grant program established under this ,act4 7b7 ,contents ,the report described in subsection 7a7 shall-- 7#a7 list the grants that have been awarded under section #d7;a72 7#b7 include the number of students who have an ,american ,dream ,account established through a grant awarded under section #d7;a72 7#c7 provide data 7including the interest accrued on college savings accounts that are part of an ,american ,dream ,account7 in the aggregate1 regarding students who have an ,american ,dream ,account established through a grant awarded under section #d7;a71 as compared to similarly situated students who do not have an ,american ,dream ,account2 7#d7 identify best practices developed by the eligible entities receiving grants under this ,act2 7#e7 identify any issues related to student privacy and stakeholder accessibility to ,american ,dream ,accounts2 7#f7 provide feedback from participating students and the parents of such students about the grant program1 including-- 7,a7 the impact of the program2 7,b7 aspects of the program that are successful2 7,c7 aspects of the program that are not successful2 and 7,d7 any other data required by the ,secretary2 and 7#g7 provide recommendations for expanding the ,american ,dream ,accounts program4 #h4 ,eligibility to receive ,federal student financial aid ,notwithstanding any other provision of law1 any funds that are in the college savings account portion of a student's ,american ,dream ,account shall not affect such student's eligibility to receive ,federal student financial aid1 including any ,federal student financial aid under the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja71 and shall not be considered in determining the amount of any such ,federal student aid4 #i4 ,authorization of ,appropriations ,there are authorized to be appropriated to carry out this ,act #c1jjj1jjj for fiscal year #bjac1 from existing ,department of ,education funds1 and such sums as may be necessary for each subsequent fiscal year4 #aj4 ,conforming ,amendment ,section #dhj7;j7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhgvv7j77 is amended by adding at the end the following3 7#e7 ,notwithstanding paragraph 7#a71 amounts made available under the college savings account portion of an ,american ,dream ,account under the ,american ,dream ,accounts ,act of #bjac shall not be treated as estimated financial assistance for purposes of section #dga7c74 4